dotDigital sales climb in second half of 2012

dotDigital Group, a software and digital marketing company, reported on Friday a 22 per cent sales increase during the last half of 2012 as new clients including BBC Worldwide and Balfour Beatty jumped on board.

dotDigital Group, a software and digital marketing company, reported on Friday a 22 per cent sales increase during the last half of 2012 as new clients including BBC Worldwide and Balfour Beatty jumped on board.

Email marketing, e-commerce and website building services were the top performers, the group said in a trading update for the six months leading to the end of December.

A 38% increase to £4.1m in email marketing, including Saas licence and usage, was driven by new clients in the corporate sector and demand from existing customers.

Clients who joined the company over the period were BBC Worldwide, e-Consultancy, Harveys, England Hockey Board, Investec, Osprey London, BP International, ITV, Odeon Cinemas, Ryman, Delice de France, Surrey County Council, City & Guilds, Cartridge World, Balfour Beatty and Help for Heroes.

The newly opened New York office also helped boost revenues as it signed its first email marketing client just before the Christmas holiday.

The company now plans to open an office in Melbourne, Australia.

While the sales were up overall, the company experienced a decline in services of search engine optimisation (SEO), pay per click and managed campaigns.

"Despite our efforts to reposition the search marketing business to mitigate the impact of the changes made by Google to their search engine algorithms in 2012, it has become clear in recent months that the original strategy of cross-selling SEO to the small and medium enterprises clients of dotMailer is now less attractive and less profitable because of reduced operating margins and is increasingly seen as a distraction to the core strategy of growing email marketing revenues," the company said in a statement.

However, that company said it has continued to see recurring revenues and is predicts growth this year.

The full results will be announced in February. Shares fell 6.72% to 15.62 at 9:50 Friday.

RD

Recommended

Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022
Why you should short this broadband satellite company
Trading

Why you should short this broadband satellite company

With an ill-considered business plan, broadband satellite company AST SpaceMobile is doomed to failure, says Matthew Partridge. Here's how to short th…
23 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Momentum investing – and why price matters more than anything else
Investment strategy

Momentum investing – and why price matters more than anything else

The recent fashion for momentum investing, with investors piling into expensive growth stocks, is nothing new, says Merryn Somerset Webb. And the dang…
21 Sep 2022

Most Popular

Paypal, bitcoin, and the weaponisation of money
Bitcoin & crypto

Paypal, bitcoin, and the weaponisation of money

Recent events have shown how both business and governments can “weaponise” money and shut down dissent. What to do? Buy bitcoin, says Dominic Frisby.
22 Sep 2022
Why we should abolish stamp duty – the worst tax in Britain
Tax

Why we should abolish stamp duty – the worst tax in Britain

Stamp duty is Britain’s most horrible tax. We should forget cutting it and abolish it altogether, says Merryn Somerset Webb.
22 Sep 2022
What we know and what to expect from Kwasi Kwarteng's mini-Budget
Budget

What we know and what to expect from Kwasi Kwarteng's mini-Budget

New chancellor Kwasi Kwarteng is to deliver a “mini-Budget”. Nicole García Mérida explains what we can expect to see.
22 Sep 2022